A Guide to Selling Residential Property at Auction
Advantages of Auction
An auction is an efficient and cost effective way of selling property and, if prepared properly with intensive marketing, advertising and mailing, will result in the greatest possible exposure of the properties offered. To maximise the effectiveness of the marketing, considerable thought must be given to the guide price, which needs to be tailored to generate competitive bidding in the auction room, thus ensuring that the best price is being achieved.
Selling by auction however, offers a high degree of certainty that a sale will be achieved on a given day and, significantly, on the fall of the gavel an immediate binding contract is formed. There is the added advantage of the sale being entirely open and transparent. As no further negotiation is permitted the entire sale process, from instruction to exchange of contracts, is achieved within as little as six to eight weeks. Most types of property are suitable for auction provided that a realistic reserve price is agreed.
Who sells at auction?
Auction is now regarded as the optimum method of sale for many sellers who range from executors, receivers, private investors, owner occupiers, banks.
O’Donnellan & Joyce have been synonymous with auctions for many years and as a result has the staff, depth of experience and reputation necessary to hold well attended auction sales and ensure a successful and profitable outcome for your property disposals.
When advising on sales we will always consider whether a property is more suitable for sale by auction or private treaty. O’Donnellan & Joyce offers both methods. Our auction and private treaty departments effectively work as one team ensuring that our advice is impartial and carefully considered.
Unrivalled Access to Property Investors
For every property offered in our auction sale we guarantee unrivalled exposure to the market with a large client date base of potential purchasers receiving details of upcoming auction properties.
The entire process, from instruction to exchange of contracts, can be achieved within as little as six to eight weeks. Our experienced team offers a streamlined service aimed at securing the best price for your property with the least amount of stress.
Marketing your property
Marketing will start approximately four to five weeks prior to the auction sale.
A detailed coloured brochure will be available to all interested buyers.
Our full brochure is available online and we send regular email alerts to our large client data base.
Advertising and PR
We advertise in the key local newspapers. We always achieve editorial coverage in addition.
We target individuals who have previously expressed an interest in similar properties.
Viewings & Surveys
Potential purchasers may want to view your property during the marketing period and have a survey carried out. In most cases, auction properties are opened at pre-arranged times for viewings. Details will be printed in the brochure.
In conjunction with your solicitors we will supply copy documents to prospective purchaser’s solicitors and will keep you constantly updated as to the levels of interest shown.
We will agree a reserve price with you for your property a few days before the auction. This is the level below which we will not be authorised to sell. It is important that this be set at a realistic reserve level.
If you think you have a property that is suitable for auction, please do not hesitate to contact us.
At O’Donnellan & Joyce it is not uncommon for 400 people to attend, creating a buzz and an atmosphere which are crucial to the success of the sale. If you have never sold at auction before, you may want to attend an O’Donnellan & Joyce Auction. The atmosphere of the room can be extremely exciting and competitive.
The Fall of the Gavel
On the fall of the Auctioneers Gavel, a binding contract is effected. The purchaser my not renegotiate and cannot change any of the terms stipulated. The successful bidder is required to provide the name, address and telephone number of the purchaser and the purchaser’s solicitors. The successful bidder will also be asked to provide a cheque for 10% of the purchase price.
Exchange of Contracts
The contract is available for the purchaser to sign. The exchange is overseen by our solicitor who is always requested to be in attendance on the day.
What happens if the property does not sell on the day?
If your property fails to reach its reserve in the room, someone may still wish to buy it. You will need to decide whether to accept any offer and advise us accordingly. The property may even be sold in the days or weeks after the sale as we continue to market the property.
Entering a property into Auction
If you have a property to sell, please contact one of the Residential Auction Team, who will arrange a free, no obligation auction appraisal and advise whether they think your property is suitable for sale by auction or an alternative method.
Once we have been formally instructed, the property will be inspected by one of our teams, measurements will be taken where appropriate, and the property will be photographed. Draft sales particulars will then be forwarded to you for approval or amendments.
At the same time your solicitor will be instructed to prepare a legal pack containing special conditions of sale, title documents, leases (where applicable), searches, planning documentation and office copy entries so that they are available to interested parties either by post or online.
Our auction team will recommend an AMV which you will need to approve before marketing begins. It is important to set the guide price at a realistic level which is attractive to buyers. This will generate competitive bidding in the auction room and ensure best value is achieved.